Imagine you on a Netflix and chill vibe! But a thought comes to your mind how this all started? No worries, the answer to your thought is here.
The original idea behind Netflix came in 1997 where it provided online movie rental service. In 1999 it began to provide online subscription service through internet. Subscribers could choose movies and television titles online and they will be delivered in the form of DVD’s, along with prepaid return envelopes. But it took a turn in 2007, when Marc Randolph and Reed Hastings (Netflix founders) decided to partnership with Starz to bring 2,500+ new films online and shows to watch instantly to its users. This deal increased the annual spending fees to around $200 million per year.
In October 2019, it had over 151 million paid subscribers in over 190 countries around the world. It offers a wide range of TV series, documentaries, and feature films across a wide variety of genres and languages.
Netflix still has around 3 million subscribers for its DVD’s service.
Netflix came out with various products to introduce built in system. The products are as follows:
1. Netflix player- This would allow Netflix to directly connect with the tv sets. But this was shut down by Reed Hastings to promote built in Netflix support.
2. The Switch- This allowed user to turn off lights when connected to smart home light systems.
3. The Button- This was introduced for certain remote controls to allow users to instantly connect to compatible devices.
Netflix focused on providing a built-in service to its users so that its easily available and affordable too.
Netflix spends more than $150 million every year on improving their recommendation every year.
The CEO of Netflix, Reed Hastings don’t plan for any new big future acquisitions, and has not till date done many acquisitions. The company believes it has plenty of room for improving its service and developing new shows. Till now, Netflix has made following acquisitions:
1. ABQ Studios
Netflix is worth 770 times today what it was at the time of Initial Public Offer (IPO). Netflix shares at its IPO were sold for just $15.
MARKETING STRATEGY/AD CAMPAIGNS
Being active on social media accounts becomes an important part of Netflix. I mean just imagine u being retweeted for a meme by the official account of Netflix. Indeed, that’s a pleasure.
Netflix has been using non-traditional ways to promote its shows. It has collaborated with dozens of brands including Coca-Cola, Baskin-Robbins, and Burger King to promote its original shows. Netflix also provides tailor-based services which provides a special place in the heart of the users. I mean stalking your account for your own good. It’s like being in a relationship and taken care of your interests. That’s interesting!
Netflix also places immense stress on its content creation and emphasizes on original content i.e. “Netflix originals.” It personalizes everything. It sends you personalized emails with suggestions for you and it also throws push notifications to users who’ve permitted them.
Somebody watched Madagascar3 352 times in 2017.
Netflix provided free subscription to a Sunil Chhetri fan in response to his tweet and gifted the user with Sunil Chhetri photograph and his autograph on it. Netflix really nailed it.
Success doesn’t come in a couple of weeks. It takes the right efforts and the right timing to achieve success. Same goes with the success story of Netflix, in initial stages it could a high revenue because it had to spent a fraction of cost to buy DVD’s and had a flexible return policy with three-day time.
It began its online streaming service in 2007, and it was the same year when LCD TV sales grew in the US, so people were able to stream directly from their tv screens. Opportunities come in different way for businesses and the recession of 2008 turned out to be fruitful for Netflix, people found it cheaper to stream on Netflix than to go out to the movies. Netflix followed low-price, high-revenue philosophy, and it turned out to be an affordable and reliable source for the families. The philosophy was keeping the price of a single package low and the high revenue will come as a result of number of subscribers.
It also has a special download and go feature that allows users to watch shows offline, and has expanded into 130 new countries where people prefer to watch videos on their cell phones. Thus, this feature allows improve mobile experience.
In 2013, Netflix came out with its first original TV series- HOUSE OF CARDS. Their artificial intelligence gave them the idea to produce the extended series of classic shows.
57% of people cite original content as their reason for subscription.
A Netflix subscription saves you from 160 hours of advertising.
SUCCESS IN INDIA
The market of India has been quite challenging for Netflix. Coming up shows having a story line of award-winning books like Sacred Games has proved to be the right step for Netflix. Netflix has been focusing on creation and proving the fact that customer is king.
With great offers like one-month free subscription, providing a wider platform and the brand image can help Netflix to grow in Indian market. With 2.0 million subscribers in India, Netflix has a long way to go in Indian market.
The addiction in India for Netflix is real. Indians are likely to binge watch a show at a faster pace than rest of the world: 3 days vs the global average of 4 days.